JOHANNESBURG (miningweekly.com) – Platinum mining company Impala Platinum (Implats) reported increased production in the 12 months to June 30 but plummeting headline earnings a share on low metal prices.

Production rose 12.7% to 1.44-million ounces, but headline earnings a share fell 67% to 12c a share on R3.5-billion-higher revenue of R35.9-billion.

Implats refined a 14%-higher 1 438 300 oz, made up of 626 900 oz from Impala Rustenburg, 251 000 oz from Zimplats, 77 100 oz from Marula, 117 000 oz from Mimosa, 183 400 oz from Two Rivers and 182 900 oz from the toll treatment of third-party concentrate by Impala Refining Services.

Outgoing Implats CEO Terence Goodlace described the operational performances of Zimplats, Marula, Two Rivers and Mimosa as “remarkable in extremely challenging operating environments”, with all setting new production records.

While Impala Rustenburg restored mill throughput to pre-strike levels in the first half of the year, poor safety performance in the second half affected its overall result, with output being lowered by an underground fire at the 14 Shaft complex, a fall-of-ground incident in an underground mining panel at the 1 Shaft complex and other unrelated safety stoppages across the operation imposed by the Department of Mineral Resources.

The company achieved a record eight-million fatality‐free shifts at South African operations.

Seven percent lower rand metal prices received were offset partly by the increased volumes and stringent cost control.

Implats’ proactive response plan to the lower platinum group metals price environment, introduced in February 2015, brought in savings of R1.4-billion across the group, of which R1.1-billion was realised at the South African operations.

Cash costs increased by 6.1% and cash held at financial year-end rose by R2.6-billion to R6.8-billion, mainly on the equity raise and strong cash generation.

Excluding 16 Shaft and 20 Shaft capital expenditure (capex), Implats generated R1.6-billion in cash with debt facilities of R4.75-billion remaining undrawn.

Four-billion rand of this debt is available until 2021.

The liquidity will enable the company to address upcoming debt maturities, as well as the ongoing needs of the business.

Mine‐to‐market output was 9.8% higher at 1.26‐million platinum ounces following a strong
operational performance from Zimplats and the post-strike operational recovery at Impala Rustenburg.

Group unit costs, which benefited from the increased production volumes and cost containment, improved by 2.2% to R21 731/oz.

Capex for the year fell to R3.6-billion on the R4.3-billion of last year and capex of R4.4-billion is planned for the 2017 financial year, of which R2.4-billion is earmarked for Impala Rustenburg's 20 Shaft and 16 Shaft projects and $122-million for Zimplats in Zimbabwe.

Capex will be funded from the opening cash balance and operating cash flows.

Seventeen shaft has been placed on low-cost care and maintenance until platinum prices improve.